Introduction To MTN big MVNO expansion plans
MTN Big MVNO Expansion Plans: MTN South Africa has significant plans to back local mobile virtual network operators (MVNOs), expecting robust growth in the market.
The presence of MVNOs in South Africa has dramatically increased in recent years. Currently, MTN supports key services such as Standard Bank Mobile, Pick n Pay Mobile, TFG Connect, Melon Mobile, and Afrihost AirMobile.
MVNOs are operators that do not own network infrastructure; instead, they purchase wholesale access from a mobile network operator to offer connectivity to their subscribers.
In South Africa, Cell C and MTN are the primary MVNO enablers.
MyBroadband inquired MTN about its strategies for the MVNO market in South Africa. MTN mentioned that MVNOs are a substantial part of its wholesale partner offering.
“MTN has observed a substantial growth of MVNOs in the country in recent years. Considering the current demand and interest expressed, there is still significant growth anticipated in the market,” MTN stated.
“Hence, MVNOs are a substantial part of our wholesale partner proposition, and our objective is to continually expand and provide top-notch MVNO services to our customers.”
MTN Big MVNO Expansion Plans: A specific division of MTN National Wholesale is devoted to supporting MVNOs.
MTN highlighted that the model enables users to access digital solutions while positioning MVNOs to capture a slice of chosen target markets and boost job opportunities.
“This is undeniably a virtuous cycle in action and is highly beneficial for our sector and economy, contributing to enhancing lives and means of livelihood,” as per MTN’s statement.
MTN Big MVNO Expansion Plans: MTN entered into its first MVNO partnership in 2013 with Afrihost Air Mobile (formerly Afrihost Mobile) before introducing a comprehensive MVNO platform in 2020. The collaboration stemmed from the relationship cultivated between the two companies during MTN’s brief ownership of Afrihost. Since FNB Connect launched its platform, Melon Mobile and TFG Connect have joined MTN as South African mobile virtual network operators. FNB Connect utilizes Cell C’s network alongside MTN’s.
MTN shares the perspective of Standard Bank Mobile and Capitec Connect.
South Africa has witnessed a rise in MVNOs, with five new major players entering the market in the last three years. According to Africa Analysis’ 2023 South African mobile MVNO report, the MVNO retail market generated R4.3 billion in revenue in 2023. Nonetheless, Capitec Connect and Standard Bank Mobile do not consider the market to be saturated.
MTN Big MVNO Expansion Plans: Standard Bank Mobile stated to MyBroadband that the MVNO market will continue to offer growth opportunities as long as certain underserved or unaddressed segments remain in South Africa. Standard Bank Mobile’s head, Kartik Mistry, believes that MVNOs provide significant value for businesses and consumers, emphasizing that there is still ample potential for expansion.
Capitec Connect expressed that there is considerable room for growth and market extension through tailored product offerings and personalization.
Capitec recognizes the changing landscape of South Africa’s telecommunications market and sees an opportunity to introduce custom offerings that resonate deeply with its clients.
FNB Connect CEO Sashin Sookroo
MTN Big MVNO Expansion Plans: FNB Connect CEO Sashin Sookroo embraced the increasing competition in the market, stating that the inflow of players in the MVNO market solidifies the strategy.”Sookroo highlighted that increased competition results in greater customer choice and value. He emphasized that the market offers significant opportunities that outweigh the risk of saturation.
Furthermore, he noted that the rise of additional MVNOs and heightened competition has prompted customers to consider what they might be missing out on. FNB Connect has observed a notable increase in uptake since the introduction of other MVNOs in South Africa.”
